Category: Australia Tech News

Brief Overview

• Generative AI (genAI) is not universally applicable to every business challenge.
• A significant number of AI initiatives face failure due to inadequate business integration and communication.
• For AI to succeed, organisations must have more than just technical knowledge; engagement from non-technical teams is essential.
• Organisations can adopt AI more efficiently with structured training and internal ‘champions of change.’
• Numerous genAI initiatives fail as they tackle the wrong issues or lack the requisite data and infrastructure.
• Cloud-based AI solutions like AWS Bedrock provide numerous tools, but businesses must concentrate on their unique requirements.

Why Viewing AI as Merely a Technical Task Leads to Pitfalls

The astounding potential of generative AI (genAI) technologies has captured the attention of businesses worldwide, consuming a considerable share of IT expenditures. Nevertheless, specialists warn that organisations concentrating exclusively on the technical sides of AI are bound to encounter failures.

For businesses in Australia, this insight is particularly significant as many companies hurry to implement AI technologies. The main message? AI is not a one-size-fits-all remedy for every business challenge, and viewing it purely as a technical endeavor rather than a comprehensive business strategy can result in disillusionment.

AI Lacks a Universal Solution

Various businesses are embracing AI for diverse motivations—some aiming to improve internal processes, while others use it in customer-focused solutions. James Finley, a senior systems trainer at Lumify Work (formerly DDLS), observes that companies throughout Australia and New Zealand are increasingly adopting AI. Lumify provides a variety of AI and cloud training options, including an 8-week CloudUp boot camp and certifications related to AI.

From his perspective, Finley points out that initial AI adopters frequently include technical experts like developers, sysadmins, or data platform professionals. Many of these individuals broaden their expertise across several domains, but as AI becomes more intertwined with business processes, firms realise they require more than mere technical skills; they need personnel who grasp both the technology and the business goals.

Transforming AI from Technical Initiative to Business Asset

Shifting AI from a technical side project into a central business asset necessitates comprehensive support from across the organisation. Gartner forecasts that by the conclusion of 2025, 30% of generative AI initiatives will be scrapped due to a lack of this integration.

Such abandonment typically occurs when firms pour substantial funds into AI resolving the incorrect issue or addressing it from a solely technical perspective. The advantages of AI are very specific to the company, workforce, and issues at hand, making it crucial to have a coherent understanding of business objectives for success.

If organisations fail to connect AI initiatives with real-world demands, they can incur costly setbacks. Some analyses suggest that as many as 80% of AI projects fail, often resulting from ineffective communication among stakeholders, insufficient data, or a misguided focus on user challenges.

Maximizing AI’s Potential

Generative AI platforms like AWS Bedrock provide a plethora of options, granting developers access to various AI models and APIs. Nonetheless, as AWS technical trainer Peter Vandaele notes, it is incumbent upon developers and organisations to direct these tools toward specific problem-solving.

“The foundational models can accomplish numerous tasks,” Vandaele states, “but you must focus it to integrate with your application.” In this framework, AI serves as an aid rather than a complete substitute for human effort.

The Significance of ‘Champions of Change’

While many technical team members have casually engaged with AI, organisations aiming for substantial AI adoption must move beyond preliminary projects. Systematic training and establishing internal ‘champions of change’ can significantly influence how effectively AI is woven into both the technical and non-technical segments of a business.

Leif Pedersen, APAC cloud and AI product manager at Lumify Work, asserts that AI training should reach beyond technical groups. “It’s vital to unlock the technology through fundamental cloud training and skills to maximize AI’s potential,” explains Pedersen. Lumify has positioned itself as a comprehensive resource for AI and cloud education, offering certifications that address both business and technical dimensions.

Nevertheless, solely technical training is insufficient. Businesses must also involve non-technical teams by designating champions who can promote AI adoption and educate others on the technology’s advantages for their roles.

Creating a Culture of AI Embrace

One of the primary obstacles concerning AI is dispelling the myths and apprehensions surrounding it. While there’s much excitement, uncertainty persists as well. Vandaele emphasizes the necessity for education and buy-in from every level of the company, not merely from upper management.

“You need to secure buy-in from the grassroots level,” Vandaele mentions. “Training can effectively spread education across the organisation.” When employees comprehend AI, they are less intimidated by it and more inclined to welcome its benefits.

Conclusion

Generative AI is an influential technology, but regarding it solely as a technical task can lead to underwhelming results. For Australian businesses, the effective adoption of AI demands a harmonious approach that includes both technical expertise and a comprehensive understanding of business objectives. Systematic training, coupled with internal ‘champions of change,’ can facilitate the essential cultural transformation within organisations. AI’s potential is extensive, yet without the right strategic focus and organisational support, companies may find themselves pouring resources into solutions that fail to yield the anticipated outcomes.

Q: Why is considering AI as a solely technical task erroneous?

A:

Viewing AI merely as a technical endeavor often results in failure because AI needs to be synchronized with business objectives. A purely technical focus can lead to addressing the wrong issues, causing disappointing outcomes and squandered resources.

Q: What role do ‘champions of change’ serve in AI adoption?

A:

‘Champions of change’ promote AI integration within a business, acting as educators to non-technical teams. They are vital for fostering cultural acceptance and ensuring that AI is embedded throughout the organisation, not just within technical departments.

Q: How can businesses guarantee the success of their AI initiatives?

A:

Successful AI initiatives depend on a precise alignment between technology and business objectives. Companies should emphasize systematic training, designate internal champions, and ensure AI solutions are designed to meet specific business challenges rather than merely showcasing current technologies.

Q: What causes many AI initiatives to fail?

A:

Numerous AI initiatives falter due to unclear communication among stakeholders, poor data infrastructure, and a lack of attention to actionable problems. Without a firm grasp of both the technical and business elements, AI project outcomes can easily falter.

Australia Post Modernizes HR Support With Integrated Tech Platform and ‘Front Door’ Initiative

Australia Post has undertaken a major transformation of its human resources (HR) support framework. This endeavor merges various HR channels into a cohesive, streamlined “front door,” backed by a powerful technology platform from ServiceNow. The revamp aims to enhance efficiency, decrease HR query volumes, and elevate the employee experience over a three-year timeline.

Quick Overview

• Australia Post establishes a centralized “front door” for HR assistance.
• The new system consolidates over 107 email accounts and five phone lines into a single point of contact.
• ServiceNow’s HR Service Delivery (HRSD) platform is the foundation of this streamlining effort.
• HR query volumes have been reduced by 20% in critical areas such as pay and leave.
• Potential integration of AI features for enhanced efficiency and service provision.
• The transformation is anticipated to span three years, with substantial progress already evident.

The Rationale Behind Australia Post’s HR Transformation

Australia Post has been a vital part of Australian logistics and communication, yet like many large organizations, it encountered obstacles in refining its internal operations. The decentralized HR support structure was proving to be ineffective. Laura Cheail, Head of People Services at Australia Post, pointed out that the previous model was neither cost-effective nor aligned with the organization’s modernization aspirations.

The inefficiencies were unmistakable: employees and managers were investing excessive time navigating a complicated HR system instead of concentrating on customer service. Acknowledging this challenge, Australia Post initiated a comprehensive overhaul of its HR support infrastructure approximately 18 months ago.

Launching the Unified “Front Door” for HR Services

Cheail indicated that Australia Post has brought its HR services together under a “single front door” model, referred to as People Services. This new interface, supported by the ServiceNow HR Service Delivery (HRSD) platform, allows employees to obtain HR assistance in a more effective manner.

“We’ve established a solid foundation for service delivery,” Cheail remarked. Employees no longer have to navigate various HR channels; they now have just one point of contact, whether via the HRSD portal or by calling the singular phone line.

The extent of the consolidation was notable. Previously, Australia Post had over 107 email addresses and five distinct phone lines for HR support, which resulted in confusion and inefficiencies. By narrowing this down to a single communication line, Australia Post has simplified the query resolution process for employees while also improving its internal metrics.

Immediate Advantages: Decreased Query Volumes

The effects of this consolidation have been considerable. Australia Post has successfully redirected 20 percent of HR query volumes from phone inquiries to the HRSD portal, alleviating some pressure from its support teams. Furthermore, the organization has observed a 20 percent decline in pay-related and leave-related queries and a 45 percent drop in time and attendance inquiries over a six-month timeframe.

However, Cheail also noted an uptick in the complexity and volume of employee relations inquiries, which have increased by 20 percent year-on-year. To address this, Australia Post has shifted existing resources to manage these more complicated cases.

AI’s Future Role in HR Support

Looking ahead, Australia Post intends to augment its HR services by integrating generative artificial intelligence (AI) into its ServiceNow platform. This technology could assist with tasks such as case summarization, streamlining the time spent on manual activities like sorting knowledge articles or managing case documentation.

Cheail stated, “We aim to provide greater value in every interaction [with staff] that we have.” By utilizing AI, Australia Post seeks to free up capacity within its HR teams, allowing them to concentrate on more strategic tasks and enhancing the overall employee experience.

Looking Ahead: Year Two and Beyond

The transformation is ongoing, with the focus for the second year on further improving service and customer experience. Australia Post’s objective is to make HR interactions as smooth as possible, ensuring that staff can allocate more time to serving customers instead of dealing with HR inquiries.

The three-year plan offers opportunities for continuous enhancements, particularly through AI and other emerging technologies, ensuring that Australia Post continues to modernize its HR operations in accordance with its broader business goals.

Conclusion

Australia Post’s HR transformation represents a pivotal move towards modernizing its internal operations. By simplifying HR interactions through a unified “front door” and utilizing ServiceNow’s HRSD platform, the organization has already experienced a reduction in query volumes. The impending introduction of AI capabilities is set to further boost efficiency, enabling personnel to dedicate more attention to delivering superior customer service.

Q&A: Important Questions Regarding Australia Post’s HR Transformation

Q: Why did Australia Post decide to revamp its HR support system?

A:

Australia Post recognized that its decentralized HR model was ineffective and lengthy for staff, thereby impacting customer service. The transformation aims to streamline HR processes, making them more cost-efficient and user-friendly.

Q: What does the “front door” initiative entail?

A:

The “front door” initiative involves consolidating HR services into a single point of contact, comprising a unified HRSD portal and one dedicated phone line, replacing the earlier system of over 107 email addresses and five phone lines.

Q: How has the new system affected HR query volumes?

A:

Following the implementation of the new system, Australia Post has successfully reduced HR query volumes by 20 percent in areas such as pay and leave. Additionally, time and attendance inquiries have decreased by 45 percent over a six-month period.

Q: What is ServiceNow’s role in this transformation?

A:

ServiceNow’s HR Service Delivery (HRSD) platform is the backbone of the entire transformation, allowing Australia Post to consolidate services and offer a more efficient HR support system.

Q: How will AI be incorporated going forward?

A:

Australia Post plans to integrate AI into its HR systems to support functions like case summarization, reducing time spent on manual processes, enabling HR teams to engage in higher-value tasks, and enhancing the employee experience.

Q: What are the forthcoming steps in Australia Post’s HR transformation?

A:

In the second year, the emphasis will be on improving service quality and customer experience. Australia Post also intends to investigate additional AI functionalities to enhance efficiency and service delivery.

Q: What is the duration of the transformation?

A:

The complete transformation is projected to take three years. Significant advancements have already been made in the first year, with further enhancements planned for the years ahead.

How Cloud Technology Enhanced Designer Transport’s Efficiency by 30%

Designer Transport, an Australian logistics frontrunner, has realized operational efficiencies of up to 30 percent through the adoption of a cloud-based warehouse management system (WMS). The firm, which offers third-party logistics (3PL) and last-mile delivery for prominent retailers like Temple & Webster, Castlery, Life Interiors, and Zanui, is utilizing advanced technology to optimize its operations.

Quick Overview

• Designer Transport encountered up to 30% efficiency improvements via a cloud-based WMS.
• The system facilitates scalability without a proportional increase in staffing and expenditures.
• Cloud solutions provide flexibility, user-friendliness, and remote access for staff.
• AI and innovative technologies are being investigated to further boost operational efficiency and expedite market responsiveness.
• Deployment was accomplished within six weeks, ensuring minimal disruption to customers.

Adopting a Cloud-Based WMS for Growth

Designer Transport partnered with its third-party logistics provider D3 Logistics to initiate a digital transformation by adopting the Infor cloud-based warehouse management system. Managing Director Moe Zayden stated that this transition has been crucial for enabling the company to scale operations without a corresponding rise in staffing and operational expenses.

“The ability to execute the same functions and outputs at increased volumes, with fewer resources, is the principal benefit of this implementation,” Zayden articulated. This has been vital in addressing the increasing needs of their retail partners, including well-known brands like Temple & Webster and Castlery.

Flexibility Offered by Cloud Solutions

The choice to transition to a cloud-based infrastructure has empowered Designer Transport to remain nimble, particularly in variable market situations. Zayden emphasized the adaptability of cloud systems, pointing out that they enable staff to work remotely and easily manage the system, a significant benefit over conventional on-premise solutions.

“We’ve had team members previously using on-prem systems who found them stiff and unwieldy,” Zayden stated. In contrast, cloud technology is significantly more user-centric and flexible.

Rapid Six-Week Deployment with Minimal Interference

A notable achievement of this implementation was the short duration necessary to launch the system. Within merely six weeks, Designer Transport successfully integrated the cloud-based WMS into its operations, and by the seventh week, the company resumed normal business for its clients.

“By week seven, we were enhancing operations and delivering our standard services to clients without significant disruption,” Zayden remarked. This swift rollout was crucial in guaranteeing that customers experienced no delays or interruptions in service.

Effortless Integration with ERP Systems

The Infor WMS integrates flawlessly with the enterprise resource planning (ERP) systems used by Designer Transport’s clientele. This ensures that all data remains consistent and precise, allowing clients to concentrate on their primary business functions, such as sales, without facing logistical complications.

“The integration guarantees that all information flowing through is precise and consistent, which is essential for our clients,” Zayden noted.

Investigating AI and Emerging Innovations

Designer Transport is not merely focusing on cloud solutions. The company is now exploring artificial intelligence (AI) and other emerging technologies to further improve its operational efficiency. Zayden shared that AI will be deployed where it is most applicable to the business, ensuring it enhances value rather than being introduced for technology’s sake.

“It’s vital to utilize AI appropriately and in relevant areas,” Zayden stated. “We’re continually searching for strategies to enhance speed to market and efficiency, and AI will factor into that.”

Achieving a Balance Between Efficiency and Speed

A primary motivation for Designer Transport’s ongoing advancements is the interplay between efficiency and speed. Zayden highlighted, “At times, efficiency and speed align closely. We’re persistently exploring strategies to elevate both, ultimately benefiting our clients.”

By adopting AI and other cutting-edge technologies, Designer Transport aims to sustain its competitive advantage in the dynamic logistics industry while providing even greater value to its clients.

Conclusion

Designer Transport has effectively utilized a cloud-based warehouse management system to attain operational efficiencies of up to 30%. This system has permitted the company to manage increased shipment volumes without a substantial rise in staffing or costs. Furthermore, the organization is investigating AI and other emerging technologies to refine its logistics processes and enhance speed to market. With a swift six-week deployment, Designer Transport minimized client disruption, which has been a key element of its success.

Q&A: Essential Queries Regarding Designer Transport’s Cloud-Based Transition

Q: What technology did Designer Transport implement to achieve these efficiency improvements?

A:

Designer Transport introduced the Infor cloud-based warehouse management system (WMS), which helps streamline operations by enhancing inventory control, labor assignment, billing, and analytics.

Q: What advantages does the cloud-based system offer Designer Transport’s operations?

A:

The cloud-based system provides flexibility, allowing employees to access it remotely. It also integrates effortlessly with clients’ ERP systems, ensuring accurate and consistent data flow. Most importantly, it supports scalability, enabling the company to handle increased shipment volumes without proportional rises in staffing and resources.

Q: How long did the implementation take?

A:

The implementation was completed in just six weeks, and by week seven, Designer Transport was fully operational with minimal disruption to clients.

Q: What role does AI play in Designer Transport’s future initiatives?

A:

AI will be strategically utilized to enhance operational efficiency and speed to market. Zayden emphasized that AI will be employed where it is most applicable and valuable, rather than being adopted merely for the sake of technology.

Q: What other advantages did Designer Transport realize from switching to a cloud-based system?

A:

Aside from scalability and flexibility, the cloud-based WMS is more user-friendly for staff compared to traditional on-premise systems. It also aids the company in maintaining agility, addressing its clients’ growth and operational requirements.

Quick Read

• Medibank has enhanced its data platform by adopting Salesforce Data Cloud, allowing for immediate responses to customer behaviors, such as the intention to cancel memberships.
• Data Cloud facilitates tailored customer experiences by merging data from various sources to construct comprehensive customer profiles.
• Marketers are now equipped to coordinate interconnected customer journeys across different engagement channels, aiming for more consistent and customized interactions.
• For over ten years, Medibank has utilized Salesforce technology, with Data Cloud playing a pivotal role in its marketing initiatives.
• The upgraded platform allows for proactive retargeting of customers who explore insurance options without completing purchases, provided they have opted in for communication.

Medibank’s Data Enhancement: Improving Real-Time Customer Engagement

Medibank, a prominent health insurer in Australia, is adopting advanced data technologies to significantly enhance its interactions with members. With the enhancement of its customer data infrastructure to Salesforce Data Cloud, the organization can now respond contextually in “near real-time” to member actions, such as when someone considers canceling their membership.

Salesforce Data Cloud: The Core of Medibank’s Marketing

Salesforce Data Cloud functions as a customer data platform (CDP), amalgamating information from both Salesforce and external systems to enhance personalized customer engagement across various channels. This upgrade enables Medibank’s marketing team to create interconnected customer experiences, greatly enhancing the consistency and relevance of their interactions.

Leah Cassidy, Medibank’s Orchestration Lead, articulated that the Data Cloud assists the marketing division not only in personalizing customer interactions but also in progressing toward delivering more consistent, experience-focused engagement. “Data Cloud is our basis for being able to orchestrate connected customer experiences,” Cassidy remarked.

Customized Customer Interactions Across Channels

Data Cloud empowers Medibank to construct a comprehensive customer profile that merges offline data with online behavior, offering a holistic view of each customer. This allows Medibank to act on specific customer interactions, such as when a member visits the ‘cancel my membership’ page on their site. With this consolidated data, Medibank can intervene promptly, providing personalized content or responses based on the customer’s profile, life stage, and preferences.

For example, if a member expresses interest in alternative insurance products but does not finalize a purchase, Medibank can proactively retarget them using the integrated insights from Data Cloud, assuming they have given permission for such outreach.

Over a Decade of Collaboration with Salesforce

For more than ten years, Medibank has relied on Salesforce technology, and the company’s Head of Marketing Technology and Orchestration, Jon Goh, is of the opinion that Data Cloud is crucial for the future of their marketing strategies. “It lies at the heart of our marketing framework and marketing operations,” Goh stated at a recent Salesforce Agentforce conference in Sydney. He highlighted that the platform delivers a singular view of marketing, facilitating more intricate, data-driven campaigns.

Medibank first implemented Salesforce’s Marketing Cloud to enhance member experiences. With the introduction of Data Cloud, the organization now possesses the resources to provide real-time interactions enriched with contextual awareness, boosting customer satisfaction and loyalty.

Implications for Medibank Customers

For customers of Medibank, this data-centric strategy translates to more personalized and timely interactions. Whether it’s an email promoting better-fitting products or a call addressing a member’s concerns prior to policy cancellation, Data Cloud enables Medibank to remain engaged and relevant to its members’ needs. This proactive approach may be vital in retaining customers within a highly competitive insurance landscape.

Conclusion

Medibank is making considerable strides in enhancing its customer experience by upgrading its data foundation with Salesforce Data Cloud. This advancement allows the health insurer to tailor customer interactions in real-time, aiding in the retention of members who might be contemplating departure. By integrating data from offline and online sources, Medibank can formulate a cohesive profile for each customer, enabling marketers to provide timely, pertinent, and consistent experiences across various channels. With Salesforce technology at its center, Medibank is well-positioned to bolster customer retention through these proactive, data-informed efforts.

Q&A

Q: What is Salesforce Data Cloud?

A:

Salesforce Data Cloud is a customer data platform (CDP) that consolidates information from Salesforce and third-party systems. It enables businesses to personalize customer interactions by forming unified customer profiles and utilizing this data across diverse engagement channels.

Q: How does Medibank leverage Salesforce Data Cloud?

A:

Medibank capitalizes on Salesforce Data Cloud to customize customer experiences in “near real-time” by integrating online and offline data. This allows Medibank to respond contextually to member actions, such as contemplating membership cancellation, and to proactively retarget customers interested in other offerings.

Q: How long has Medibank collaborated with Salesforce technology?

A:

Medibank has been utilizing Salesforce technology for more than ten years. They initially adopted Salesforce’s Marketing Cloud to enhance member experiences, and with the inclusion of Data Cloud, they have improved their capacity to deliver real-time, contextually enriched interactions.

Q: How does this upgrade benefit Medibank customers?

A:

The upgrade positively affects Medibank customers by enabling more personalized and timely interactions, such as addressing a member’s intention to cancel or suggesting relevant products based on their browsing activity. This ensures that customers receive more pertinent and consistent messaging, boosting overall satisfaction.

Q: Can Medibank retarget customers who browse other insurance products?

A:

Yes, Medibank can proactively retarget customers who explore other insurance offerings without completing a transaction, provided customers have consented to such communication. This is achieved by utilizing insights from Salesforce Data Cloud to facilitate more targeted follow-ups.

Q: How does Data Cloud enhance marketing strategies at Medibank?

A:

Data Cloud improves marketing strategies by providing insights into customer segmentation and behavior, allowing marketers to refine existing experiences or develop new ones. It also ensures a more consistent implementation of personalized campaigns across various channels, enhancing the overall customer experience.

Orica Employs Generative AI to Revamp IT Service Desk Operations

Orica, a worldwide forefront in explosives and blasting technologies, has made a significant move to transform its IT service desk functions by incorporating generative AI using ServiceNow’s Now Assist tools. Following a two-year transformation journey, the company is now enjoying the advantages of automation, chatbot functionalities, and AI-driven self-service to improve both employee and customer interactions.

Quick Overview

• Orica merged generative AI with ServiceNow’s Now Assist to optimize IT service desk functions.
• The firm transitioned from a decade-old ServiceNow instance to a fresh setup after a 12-month re-platforming initiative with Thirdera.
• AI tools such as incident summarization, resolution note creation, and AI search have shown promising early results.
• Orica’s virtual agent deflection rate increased from 18% to 94%, leading to a substantial decrease in service desk demands.
• The integration seeks to lower Mean Time to Resolution (MTTR) and broaden AI application in other IT operations sectors, including event management.
• Future aspirations include multilingual AI support, with the technology potentially accommodating up to 12 languages.

Orica’s Path to Generative AI Integration

Orica initiated its journey to modernize IT operations two years ago. With a legacy ServiceNow instance that had become outdated, the company opted to reimplement the platform for a more effective and streamlined system. This re-platforming project, completed in partnership with ServiceNow ally Thirdera, spanned 12 months and positioned Orica back to an “out-of-the-box” ServiceNow configuration.

“Around two years ago, we chose to reimplement ServiceNow, and we undertook a 12-month re-platforming process with Thirdera to restore us to that greenfield out-of-the-box position,” stated Bradley Hunt, Orica’s Manager of DevOps and Regional Apps, during the ServiceNow World Forum Melbourne 2024.

Leveraging AI in IT Service Management

Upon completion of the re-platforming, Orica swiftly capitalized on the latest AI advancements. Within 18 months, the company introduced a variety of new functionalities, including a virtual agent, lifecycle events for HR and legal services, cloud discovery, and event management, among others. The deployment of these tools marked Orica’s initial foray into the realm of AI.

Initially, the organization tested external large language models (LLMs) through Azure OpenAI services, developing proof-of-concept AI tools integrated into their IT Service Management (ITSM) workflows. These preliminary experiments highlighted the potential advantages of AI integration in simplifying routine service desk tasks.

Now Assist: AI-Enhanced Functionalities

Orica transitioned to ServiceNow’s native generative AI suite, Now Assist, to further bolster its functionalities. The company promptly deployed capabilities such as incident summarization, resolution note creation, and AI search within six weeks.

“We were able to utilize [a ServiceNow accelerator] program, and within six weeks we implemented incident summarization, resolution note generation, and AI search [driven by Now Assist],” Hunt disclosed.

While the initial AI features such as resolution note generation provided only marginal time benefits, other features like live chat summarization and AI search quickly gained popularity among users. The ability to swiftly seek solutions, such as resetting a password, without traversing multiple knowledge articles was especially advantageous.

Enhancing Virtual Agent Effectiveness

A key success has been the effect of AI on Orica’s virtual agent. The deflection rate—the frequency with which the virtual agent successfully resolves an issue autonomously—surged dramatically from 18% to 94%. This enhancement has alleviated the burden on human service desk agents, allowing them to concentrate on more intricate tasks. Moreover, the interaction success rate of the virtual agent has doubled, augmenting user satisfaction.

“When observing the virtual agent [independently], the deflection rate [has escalated] from 18 to 94 percent, [which] is an extraordinary rise,” Hunt emphasized.

Minimizing Mean Time to Resolution (MTTR)

A critical metric Orica is attentively monitoring is the Mean Time to Resolution (MTTR), which gauges the speed of incident resolution. Even though the Now Assist tools had been recently operational for two months during Hunt’s presentation, Orica had already recorded a one-day decrease in MTTR across all incidents.

“We’re two months into this, [and] we’ve already reduced a day [from MTTR]. That’s across all incidents,” Hunt noted.

Future Goals: Widening AI Utilization in IT Operations

In the future, Orica aims to broaden its application of generative AI across additional areas of IT operations beyond ITSM. The company is investigating the potential utilization of AI for event management, software asset management, and other vital IT functions. Additionally, Orica seeks to boost AI’s multilingual support capabilities, enhancing its effectiveness in servicing the company’s global operations.

“Service management is excellent, but can we extend it to other realms of IT operations? Are we able to handle alerts, event management, and summarization of those?” Hunt inquired, underscoring the company’s long-term ambition for AI integration.

The plan entails further enhancements in deflection rates and the prospective launch of additional AI-driven features throughout Orica’s IT environment.

Conclusion

Orica’s integration of generative AI via ServiceNow’s Now Assist tools is redefining how the company oversees its IT service desk operations. With a concentration on automation, chatbots, and AI-enabled search, Orica has already experienced considerable advancements in areas such as virtual agent deflection rates, MTTR, and general service desk efficiency. As the organization continues to diversify its AI applications across other IT operations, the future appears bright for further improvements and cost reductions.

Q&A

Q: What is Now Assist, and in what ways is Orica using it?

A:

Now Assist is a collection of generative AI tools from ServiceNow intended to enhance IT operations by automating tasks such as incident summarization, resolution note generation, and AI-driven search. Orica employs Now Assist to improve its IT service desk, facilitating faster issue resolutions and lessening the burden on human agents.

Q: How has AI integration influenced Orica’s service desk efficiency?

A:

The inclusion of AI has substantially enhanced Orica’s service desk efficiency. For instance, the virtual agent’s deflection rate soared from 18% to 94%, meaning that significantly fewer tickets necessitate human interaction. This has contributed to easing the workload for service desk agents and increased user satisfaction.

Q: What obstacles did Orica encounter in AI implementation?

A:

A significant challenge was the transition from a decade-old, customized ServiceNow instance to a greenfield configuration. This process spanned 12 months and required collaboration with ServiceNow partner Thirdera. However, the re-platforming was crucial for enabling the new AI functionalities.

Q: What does Orica envision for future AI integration?

A:

Orica anticipates broadening AI’s application beyond IT service management into other IT operational areas, such as event management and software asset management. The company is also prioritizing advancements in AI’s multilingual capabilities to serve its global operations more effectively.

Q: Has AI contributed to reducing the Mean Time to Resolution (MTTR) for incidents?

A:

Yes, Orica has already recorded a one-day decrease in MTTR across all incidents within just two months of deploying Now Assist tools. The organization expects further enhancements as it continues optimizing its AI capabilities.

Q: In what ways is AI search benefiting Orica’s employees and customers?

A:

AI search allows users to discover solutions more efficiently without sifting through numerous knowledge base entries. For example, employees can instantaneously seek answers to common inquiries like “How do I reset my password?” and receive a summarized response, enhancing both speed and satisfaction.

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ESSSuper Initiates Legal Action Against Tech Firm Iress Regarding Contractual Dispute

Snapshot

• ESSSuper has launched a civil case against Iress alleging contract violations.
• The Victorian superannuation fund accuses Iress of several “material violations” and misrepresentations.
• Iress refutes the allegations and continues to deliver the contracted services.
• The conflict has escalated to the Federal Court, with no clear resolution presently available.
• This case illustrates the risks tied to outsourcing essential services within the financial industry.

Context: The Contractual Engagement

At the end of 2019, Emergency Services & State Super (ESSSuper), which caters to Victorian government employees and emergency services staff, delegated its back-office technology and administration tasks to Iress, a prominent developer of financial services software. This decision was anticipated to improve digital systems for both employers and members. However, since that time, the collaboration between ESSSuper and Iress has significantly declined, culminating in a legal confrontation that has now arisen in the Federal Court.

The Legal Conflict: Accusations and Assertions

ESSSuper has recently lodged a civil case against Iress and its affiliate Financial Synergy Holdings, alleging “material contract violations” and misrepresentations before the contract was finalized. ESSSuper claims that these violations have caused considerable inconvenience to its members and financial detriment to the fund, necessitating expenditure of “time and resources” on external services to address persisting challenges.

According to ESSSuper, despite numerous endeavors to resolve the matters through direct communication and the dispute resolution protocols specified in the contract, Iress has not fulfilled its obligations. Consequently, the fund’s board felt it had no choice but to pursue legal recourse.

In a declaration, ESSSuper highlighted that it does not engage in litigation lightly, particularly in light of its member-centric philosophy. Nevertheless, the substantial ongoing difficulties compelled the board to seek court intervention.

Iress’ Position

Iress has categorically rejected the allegations. In a financial report released to the Australian Securities Exchange (ASX), the firm asserted that it “disputes the accusations leveled against it and will present a defence per the court’s schedule.” Despite the legal proceedings, Iress continues to deliver the agreed-upon services to ESSSuper as the legal matter progresses through the judicial system.

Effects on Members and the Superannuation Sector

The legal confrontation between ESSSuper and Iress has garnered attention across the wider superannuation and financial services landscape. While outsourcing essential back-office functions is commonplace for superannuation funds, this incident underscores the potential hazards associated with service providers allegedly failing to uphold their contractual commitments.

The disruptions stemming from the alleged breaches have reportedly “considerably inconvenienced” ESSSuper members, prompting concerns over the reliability of outsourced technology solutions within the superannuation sphere. As more funds pursue operational efficiencies through external providers, this case could serve as a cautionary illustration for other superannuation boards.

What’s on the Horizon?

As the case advances in the Federal Court, both sides are engaged in a critical dispute. For ESSSuper, this lawsuit is a pivotal attempt to safeguard its members’ interests and recover losses incurred. For Iress, defending itself is vital to preserving its standing as a trustworthy technology provider for financial firms.

With no resolution yet available, the Australian financial services sector will remain keenly observant of the developments in this case, as its outcome may establish a benchmark for future contractual conflicts between superannuation funds and their service providers.

Recap

ESSSuper has brought a case against Iress in the Federal Court, alleging that the technology provider has committed contractual breaches and misrepresentations leading to “loss and damage” for both the super fund and its members. Despite efforts to resolve the dispute via the methods outlined in the contract, ESSSuper contends that Iress’ shortcomings left them with no choice but to seek legal action. Iress continues to deny the claims and fulfill its contractual duties, though the future of the court proceedings remains unclear. This situation serves as a warning to other superannuation funds regarding the perils of outsourcing vital financial services.

Q: What is the function of ESSSuper?

A:

ESSSuper operates as a Victorian government-sponsored superannuation fund catering to employees of government entities and emergency services. It manages retirement funds and delivers pension services to its members.

Q: What prompted ESSSuper to sue Iress?

A:

ESSSuper has claimed that Iress has violated their contractual agreement and made misrepresentations prior to the contract’s execution. The fund states that these violations have imposed significant inconvenience on its members and led to financial setbacks, requiring ESSSuper to utilize third-party services for remediation.

Q: How has Iress reacted to the claims?

A:

Iress has refuted the allegations put forth by ESSSuper, asserting that it will mount a defence in court. The company continues to provide the services specified in its contract with ESSSuper amidst the ongoing legal dispute.

Q: What consequences has this legal dispute had for ESSSuper members?

A:

ESSSuper reports that the alleged violations by Iress have caused its members substantial inconvenience. The fund has had to allocate extra resources to tackle the issues, though specific impacts on members’ experiences remain vague.

Q: What implications does this case hold for the superannuation and financial services sectors?

A:

The case emphasizes the risks linked to outsourcing crucial back-office operations within the superannuation domain. A ruling in favour of ESSSuper by the court could prompt tighter oversight of technology providers and a reevaluation of outsourcing practices across the industry.

Q: What are the potential results of this legal action?

A:

The court may decide in favour of ESSSuper, possibly leading to Iress being ordered to pay damages or offering some form of restitution. Conversely, Iress might successfully contest the claims, allowing the existing contract to proceed without additional legal complications. Regardless of the outcome, this case is poised to set a precedent for similar disputes in the future.

Q: What measures did ESSSuper undertake before filing the suit?

A:

ESSSuper asserts that it made efforts to address the concerns through direct dialogue and by employing the dispute resolution processes included in its contract with Iress. However, the absence of a satisfactory resolution resulted in the fund deciding to pursue legal action.